Baker Hughes (BKR) Earnings Date & Reports

Key Takeaways

• Baker Hughes reported third-quarter 2026 revenue of $8,025 million, up 14% year over year and above the consensus estimate of roughly $7.69 billion.
• Adjusted diluted earnings per share (EPS) came in at $0.70, beating the analyst consensus of $0.60 by $0.10.
• GAAP net income was $411 million, down 33% year over year, while GAAP diluted EPS fell to $0.41, reflecting acquisition-related costs.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 14% to $1,415 million, supported by the Chart acquisition and higher volume.
• Total book-to-bill reached 1.3, and remaining performance obligations (RPO) hit a record $46.4 billion, signaling strong future demand.
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Earnings Context and Why It Matters

Baker Hughes' third-quarter 2026 report marks the first full quarter to incorporate the recently completed Chart Industries acquisition, making it a key test of the company's diversification strategy beyond traditional oilfield services. Investors are watching whether the industrial and energy technology (IET) business can sustain momentum in gas turbines, liquefied natural gas (LNG) equipment, and data-center power generation, even as oilfield activity remains uneven. The results matter because Baker Hughes is repositioning itself around electrification and power demand tied to artificial intelligence and data centers, areas with long-term growth potential. A strong revenue beat and record backlog suggest the strategy is gaining traction, though acquisition costs pressured GAAP (Generally Accepted Accounting Principles) profitability.

Reported Results

Baker Hughes posted third-quarter 2026 revenue of $8,025 million, up 14% year over year and 19% sequentially, driven primarily by the contribution from the Chart acquisition along with higher volume and pricing. Revenue topped the consensus estimate of about $7.69 billion.

Adjusted diluted EPS was $0.70, exceeding the $0.60 consensus by $0.10. On a GAAP basis, diluted EPS was $0.41, weighed down by $284 million in adjusting items tied largely to transaction-related costs. Adjusted net income rose 2% year over year to $695 million, while adjusted EBITDA climbed 14% to $1,415 million.

Total book-to-bill was 1.3, with the IET segment posting an even stronger 1.7, indicating order intake outpaced revenue. Remaining performance obligations (RPO), a forward indicator of contracted work, reached a record $46.4 billion. Operating cash flow was $1,005 million, and free cash flow (operating cash flow minus capital expenditures) was $769 million.

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Market Reaction and Investor Sentiment

Heading into the report, sentiment was cautiously optimistic, with 11 positive and 4 negative EPS revisions in the 90 days prior, according to Investing.com. The top- and bottom-line beats supported that optimism, but the sharp year-over-year decline in GAAP net income — down 33% — tempered enthusiasm and highlighted the near-term cost burden of integrating Chart Industries. The stock closed at $59.00 following the release, down about 2.5% over the prior three months but up roughly 23% over the trailing 12 months. Investors appear to be weighing the company's accelerating order book and record backlog against the integration expenses and softer headline profitability that accompanied the acquisition.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should focus on how quickly Baker Hughes can convert its record RPO into revenue and margins. The IET segment's book-to-bill of 1.7 suggests robust demand for gas turbines, compression equipment, and power-generation solutions, particularly for data centers and LNG infrastructure. Sustaining that order momentum will be central to the growth narrative.

Chart Industries integration will remain a key watchpoint. Management will need to demonstrate that the deal's cost synergies and margin benefits materialize on schedule, especially as transaction and restructuring costs continue to weigh on GAAP results in the near term. Any delays or unexpected integration expenses could pressure profitability.

Finally, monitor the oilfield services and equipment (OFSE) segment, where demand remains tied to upstream spending by oil and gas producers. Global drilling activity, customer capital budgets, and geopolitical factors affecting energy supply will all influence near-term results. Free cash flow generation and capital allocation will also be closely followed as the company balances debt management with continued investment in high-growth power and digital solutions.

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